Acting Head of the Board of Ukrzaliznytsia Yevgen Kravtsov during the conference-call November 20, 2017 told investors about financial results of 9 months 2017. Conference-call was held jointly with Dragon Capital.
Acting Head of the Board of Ukrzaliznytsia emphasized importance of dialogue and transparency of Company. noted “Transparent conversation with investors – is good signal of approach changes in Company, possibility for objective assessments and constructive dialogue,” Yevgen Kravtsov mentioned.
Among the positive results of 9 months’ work of Company, Acting Head of the Board called: revenue growth faster than costs, essential reducing of credit portfolio, increasing of fleet of working railcars, growth of transit transportation on 3.2%, and other.
“Situation in Company has stabilized and results of 9 months demonstrate it: net profit 80.4 mln. UAH versus losses last year’s relevant period according to IFS. The ability of the company to continue its continuous activity has been confirmed by an independent auditor Ernst&Young. We expect that Ukrzaliznytsia will have positive financial result by the end of 2017. At present we work on financial plan 2018, hopefully, at the beginning of the year it will be approved,” Yevgen Kravtsov said.
Also he stressed importance of fair tariff policy, in particular, necessity of tariffs indexation on level not lower than price index of commodity producers and implementation of deregulation of railcar tariff component – payment for rail car use. It will contribute to the fact that PJSC Ukrzaliznytsya will be on an equal conditions with other market participants, which will increase its efficiency and profitability.
Yevgen Kravtsov told about cooperation with international financial organizations, in particular, investment projects implemented for EBRD and EIB lending. Also Acting Head of the Board mentioned that Ukrzaliznytsia intends to refer to bondholders of the U.S.$500,000,000 9.875 per cent. Loan Participation Notes due 2021 issued by Shortline plc (only to fund a loan to the Ukrzaliznytsia) with consent solicitation in order to amend relevant documentation in relation to consequences which relate to the Ukrzaliznytsia local indebtedness adjustment.
Yevgen Kravtsov noted that the cycle of informational meetings with international investors will continue in the future. “This is the embodiment of the company’s new concept of building partnerships with investors,” Yevgen Kravtsov said.